Pakistan’s economy in 2016–17 recorded growth of 5.3%, the highest in a decade, driven by agriculture recovery, industrial expansion, and strong services. Yet, the Federal Budget 2017–18 was framed against rising fiscal and external pressures – widening deficits, growing debt, and balance‑of‑payments concerns. Presented in a politically transitional context, the budget sought to sustain growth momentum while addressing structural weaknesses. This SPDC brief reflects on the state of the economy and evaluates the fiscal choices underpinning the 2017–18 budget.
